Few days back Amazon’s CEO Jeff Bezos said that his company wouldn’t follow Apple’s example and launch a touchscreen tablet like Kindle to compete with the iPad. He also added that even though Amazon is interested in the color E-Ink technology, displays based on the technology are still in prototype stage and won’t come to the market any time soon.

However, Amazon is working on next generation Kindle, which they will introduce in August this year according to Bloomberg. Two sources close to Amazon told Bloomberg “The device will be thinner and have more responsive screen with a sharper picture. The new Kindle won’t include a touchscreen or color.”

Amazon will continue to focus on e-Reader market rather than join the tablet race against Apple. Analysts say that the e-Reader market will double this year from 3 million units to about 6 million units, of which Amazon Kindle will have around 50-60 percent share (3-3.5 million units).